As such, social distancing, lockdown and isolation have spiked the use of fintech apps in Europe 72% in a week, according to a new report from the deVere Group, an independent financial advisory group.
“A new era has already begun, with digitalisation and new technologies driving the shift. This can be seen by demand soaring for video-calling platforms such as Google Hangouts, Skype, FaceTime and Zoom amongst others, as more people… work remotely,” said James Green, deVere Group’s divisional manager of Europe. “Indeed, Zoom Video Communications has been a remarkable performer in recent times, with its shares gaining more [than] 32% since the market began its decline in mid-February.”
The 72% jump in app use for existing clients was accompanied by an increase in new user inquiries as well, said Green. Overall, he said, this additional use of fintech will be a good thing for most everyone. “I believe it’ll have a positive impact. Why? Because it is meeting evident and growing client demand for on-the-go service, it is speeding up the advance of financial inclusion across the world, plus it gives firms the opportunity to diversify, cut costs, meet regulatory requirements and further enhance the client experience,” he said of the growing adaptation of fintech.
FROM TWITTER
- surge of usage in business apps
- strong growth in downloads of games
- demand for food delivery apps grows
- consumers turn to fintech apps
- usage of social media & video streaming apps surges
- time spent in mental health increases
https://angel.co/today/stories/the-impact-of-coronavirus-on-the-mobile-economy-15290… via @appannie
Green, who notes fintechs are considered a key driver of the “fourth industrial revolution,” said they have been filling gaps in financial services since the 2008 financial crash. “In broad terms, this means immediate, on-the-go, 24/7 access to, use and management of [individuals] money. It means personalised, on-demand services. It means lower costs,” he added.
However, in contrast to the clear advantages that app-driven companies are experiencing due to new, isolation-driven norms, separate information from Rosenblatt Securities highlights the diverse array of outcomes the worldwide economic slowdown can bring to the fintech sector.
“Balance-sheet-intensive businesses” like digital lending and robo-advisory companies, will be at a bigger risk than “transaction-volume” businesses, like payments. Further, “consumer-facing.B2C models will see “an immediate slowdown” compared to enterprise/B2B businesses. Unicorns are likely to see the biggest valuation hit and “challenger banks” are facing both lower transaction volumes and pressure to clash acquisition costs.
“Not surprisingly, better capitalized and more established FinTechs should fare better, and may actually benefit from decreased competition as less proven peers struggle,” reads the report.
Another prediction from the report indicates incumbent entities with stronger balance sheets, more diversified distribution and better brands will reassess their dominance and become active in the acquisition of struggling fintechs with good products and management.
